Euro And Cable In Tight Ranges Amid Thin Liquidity

There was nothing to gain for traders in both EUR/USD and GBP/USD on Monday. Instead, we struggled with a whipsaw performance amid low volatility conditions. Even a downside break of 1.1910 in the EUR/USD failed to provide follow-through – at least until Tuesday morning.

As catalysts for bigger market moves lack, unprofitable trading conditions could possibly continue in the weeks ahead. Traders should therefore watch their risk assessment and stay on the sidelines as long as the summer doldrums impact trading conditions negatively.

Despite thin liquidity in the market, we expect some upside potential in the U.S. dollar ahead of Friday’s NFP report. We still see the risk tilted to the downside in both EUR/USD and GBP/USD with lower targets at 1.1870 and 1.18 in the euro and 1.38 and 1.3730 in the cable.

The DAX traded choppily between 15670 and 15540 yesterday and was unable to settle on a clear direction. Let’s see whether there could be bigger moves today.

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